UK HealthTech Industry Poised for Transformative Growth with Strategic Support
Topic : News and Press Type : Briefing
The UK HealthTech sector holds immense promise, but despite its capabilities, the industry’s full potential remains largely untapped. With the right strategic stimulus and support, HealthTech has the power to not only drive significant economic growth but also enhance healthcare delivery across the NHS.
Earlier this year, ABHI collaborated with Lord Sainsbury’s Gatsby Foundation on a transformative initiative. Partnering with Imperial College London, ABHI undertook an in-depth exploration of bold policies designed to unleash HealthTech as a pivotal driver of UK economic expansion. This effort culminated in the release of a comprehensive report, launched this week at Imperial’s new Centre for Sectoral Economic Performance.
The report highlights HealthTech’s substantial economic impact in the UK, equating its Gross Value Added (GVA) to that of the biopharmaceutical sector at £13bn. However, the growth potential of HealthTech is currently constrained by capital and skills shortages, compounded by uncertainties arising from Brexit. To address these challenges, the report proposes a series of targeted policy measures to bolster investment, including tax incentives, regulatory reforms, and fostering closer collaboration with the NHS to accelerate the adoption of innovations.
Key initiatives proposed include the recognition of product approvals from trusted international jurisdictions to streamline regulatory processes, tax reforms to enhance R&D investment, the establishment of a formal network of support to increase productivity, and the expansion of ABHI’s international accelerator programme to boost exports. These measures are designed to enhance collaboration with the NHS, foster innovation, and drive economic growth within the UK healthcare sector.
The report presents a clear vision for the future, outlining short, medium, and long-term policy recommendations that, if supported effectively, can significantly enhance efficiency and innovation in NHS healthcare delivery, while positioning the UK as a global leader in HealthTech. It projects a 50% increase in R&D spending, the creation of 50,000 new skilled jobs, and a potential doubling of the sector’s GVA within the next decade.
In his foreword, Professor the Lord Darzi of Denham said: “The Independent Investigation of the NHS brought to light the remarkable opportunities for revitalising the NHS, and the HealthTech industry will be central to realising this potential. The strategy laid out in this report provides a pragmatic and achievable path to unlocking the value offered by the HealthTech sector. Applied together, these policies will drive innovation and build a HealthTech sector that will serve as the lifeblood of a reinvigorated NHS, delivering health, wealth, and growth for generations to come.”
The report not only sets forth a robust industrial strategy for HealthTech but also presents a methodology for developing this strategy from the ground up, with industry leadership and government support.
